JACKSON, Mich. – Jackson-based CP Federal Credit Union has launched three new programs to help members who’ve been laid off or lost their jobs when a business shut down.
The programs offer low-interest loans, refunds on late fees and a “skip-a-pay” option. People are only eligible if their income loss is unexpected, not due to seasonality.
"We know that our members face unexpected hardships – oftentimes outside of their control," Valerie Schuette, chief operating officer for CP Federal, told MLive.com. "We want to be a partner with our members and helping them to get back on track."
The loan option is a 12-month unsecured loan for up to $3,500 at 5% APR, regardless of credit. Rates typically start at 9% on similar loans, Schuette told MLive.com. The rate doesn’t change once the member is employed again, Schuette said.
Get Back to Being ‘Stable’
CP Federal told the publication it will consider waiving some penalties like late fees for those with unexpected income loss.
The “skip-a-pay” option lets people skip a loan payment up to two times per year, bumping back the ending date of the loan. The option is available to all CP Federal members, but the $35 fee is waived for those who’ve lost their job, according to MLive.com.
“The goal is to help them get back to being financially stable without having some of the those ‘gotchas’ at the end,” Schuette told the publication.